IDEAS home Printed from https://ideas.repec.org/a/taf/raflxx/v2y2006i5p323-327.html
   My bibliography  Save this article

Overpricing of new issues in the Japanese straight bond market

Author

Listed:
  • Kenji Matsui

Abstract

It has been suggested that newly issued corporate straight bond yields in Japan are set lower than equilibrium yields; that is, new issues tend to be overpriced. This study examines the overpricing of straight bonds using data on new issues between April 1995 and March 2000. The results indicate that issuing yields are indeed lower than aftermarket equilibrium yields. This is especially the case for issues with a smaller number of underwriters, and periods when fewer securities companies have experience as the lead managing underwriter. The findings also suggest that this effect is more pronounced for issues with ratings between AAA and A−, and less so for those with ratings between BBB+ and BBB−.

Suggested Citation

  • Kenji Matsui, 2006. "Overpricing of new issues in the Japanese straight bond market," Applied Financial Economics Letters, Taylor & Francis Journals, vol. 2(5), pages 323-327.
    • Handle: RePEc:taf:raflxx:v:2:y:2006:i:5:p:323-327
    DOI: 10.1080/17446540600606215
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/17446540600606215
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/17446540600606215?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:raflxx:v:2:y:2006:i:5:p:323-327. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rafl20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.